Following recent legal action by the U.S. Securities and Exchange Commission (SEC), Robinhood has announced it will end support for Cardano (ADA), Polygon (MATIC) and Solana (SOL) by June 27.
The move to delist these cryptocurrencies was preceded by reports of the SEC recognizing these tokens as securities.
However, it is worth noting that other popular tokens, such as Dogecoin (DOGE) and Shiba Inu (SHIB), have not been named in the lawsuit and will continue to be supported on the platform.
Robinhood has assured its customers that apart from ADA, MATIC and SOL, all other cryptocurrencies will remain unaffected.
Cryptocurrency trading platforms often decide to delist tokens viewed as securities by the SEC to avoid potential legal complications and to ensure compliance with existing financial regulations. This move is primarily driven by the need to protect both the platform's operations and its customers.This issue came to the forefront during the Ripple Labs (XRP) case in early 2021. The SEC sued Ripple Labs, alleging that it had conducted an unregistered securities offering by selling XRP. In response to the lawsuit, many exchanges, including Coinbase, Bitstamp and Binance US, decided to halt trading or delist XRP to avoid potential regulatory backlash.
To prepare for the June deadline, Robinhood customers have the option to sell or transfer their ADA, MATIC and SOL holdings.
Despite the upcoming delisting, Robinhood has stressed that the platform's industry-leading security measures ensure the safety of all customer-owned coins.